Page 274 - DMGT510_SERVICES_MARKETING

Unit 14: Service Strategies

By adopting a service recovery system, service organizations get another opportunity or a Notes
second chance to correct any mistake that occurred during the delivery of service in the first
instance. If the problem is resolved and the customer is satisfied, he may give up his attempts to
switch to competitors. If the company continues to provide high quality service, it might -
succeed in earning a loyal customer. This loyal customer could tell his friends and relatives how
the organization attended to his concerns and solved his problems. This will help develop a
positive image about the company among prospective customers and serve as word-of-mouth
publicity for the business. While developing an effective developing a service recovery system,
the following guidelines should be kept in mind:

14.2.1 Track and Anticipate Recovery Strategies

Service firms should attempt to know if any customer of theirs is dissatisfied with their service
or any other aspect of the firm. Periodic customer surveys and regular customer interaction can
help the organization identify any failures on their part. There may be some customers who are
dissatisfied with poor quality service but do not complain to the firm or voice their problems
openly. Such customers may reduce their business interactions with the organization and may
eventually discontinue utilizing the services of the organization. Organizations can track such
customers with the help of technology and attempt to communicate with them.

Example: A private marketing company which regularly utilizes the services of a
particular hotel for the business travel of its employees starts to utilize the services of another
hotel, at the behest of its employees. If the first hotel had a proper database management system,
it would have been able to notice that the business from a corporate account had been declining
and can take the necessary steps to revive the account.
Companies should encourage their customers to complain to them in case they face any problem
in the quality or delivery of service. The complaint submitting process should be simple and
swift and should be widely publicized so as to increase the awareness of customers.

The management should continuously analyze the complexities involved in the service process,
and identify the areas where there is a possibility of failure or delay. This proactive approach
can help the management prevent some of the customer related problems. It should develop
effective mechanisms to deal with any problems that may still arise, and. solve them immediately
to the customer’s satisfaction.
14.2.2 Solve Problems in Quick Time

One of the main reasons for customers shying away from conveying their problems to the
company is that they feel that it will be of no use. They might have formed this opinion based on
past experience or on hearing it from friends. Some customers, however, communicate their
grievances to the company, expecting a prompt corrective action. When the company fails to
meet the customer’s expectations and fails to sort out the issue, he loses confidence in the
company and its services.
The management should recognize that the customers who complain have given a second
opportunity to the organization to correct its mistake. If it fails to deliver even after being given
a second chance, the customers will, perhaps, be lost forever. The management should motivate
its employees to utilize the opportunity to correct their mistake and offer superior quality. They
should be made to realize that they can convert dissatisfied customers into satisfied and loyal
customers again by exceeding their service expectations. The complaints lodged by customers
should be attended to immediately and the problems resolved to their satisfaction. The employees
of the company should be made to understand the implications of bad service both in terms of

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